- Nigerian court adjourns Binance’s tax case to April 30, 2025.
- Binance challenges document service, citing lack of physical office in Nigeria.
- Nigeria seeks $81.5 billion from Binance for taxes and economic damage.
A Nigerian court has adjourned the ongoing tax evasion case against global cryptocurrency exchange Binance to April 30. The court also granted Binance’s request to annul an order that allowed legal documents to be served via email, citing the exchange’s lack of a physical office in Nigeria.
As reported by Reuters, Binance’s lawyer, Chukwuka Ikwuazom, argued that the FIRS had not obtained court approval to serve documents outside Nigeria, a requirement he claims was overlooked. Binance, which is registered in the Cayman Islands, does not maintain a physical office in Nigeria, making the order for substituted service invalid, according to Ikwuazom.
“On the whole the order for the substituted service as granted by the court on February 11, 2025 on Binance who is registered under the laws of Cayman Islands and resident in Cayman Islands is improper and should be set aside,” Ikwuazom said.
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How Much Does Nigeria Claim Binance Owes?
Nigerian authorities claim Binance has a significant operational presence in the country despite not being registered there. The government is seeking $81.5 billion from Binance, including $2 billion in back taxes and $79.5 billion for alleged economic damages.
The FIRS argues that Binance’s peer-to-peer platform facilitated unregulated trading, contributing to the depreciation of the Nigerian Naira, which has lost over 70% of its value against the US dollar since 2023. Officials contend that such activities have undermined Nigeria’s financial stability, with inflation nearing 30% in 2024.
Impact on Nigeria’s Economy
Binance has been active in Nigeria since at least 2019, processing over $21.6 billion in transactions in 2023. The FIRS claims this major economic presence justifies the demand for corporate income taxes, along with a 10% penalty on unpaid taxes and 26.75% interest based on the Central Bank of Nigeria’s lending rate.
Related: Ripple Calls on UK Government to Expedite Crypto Asset Regulation
Binance is also facing legal issues globally, including investigations in the United States. Last year, its founder CZ, was sentenced to four months in prison for money laundering violations, adding to the company’s mounting legal troubles.
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